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California Billionaire Wealth Tax Push Draws Exit Threats and New Tech Blowback

The labor-backed measure is still collecting signatures for 2026, facing opposition from Gov. Gavin Newsom.

Overview

  • Backers propose a one-time 5% levy on net worth above $1 billion, payable over five years and potentially retroactive to Jan. 1, 2026, with proponents citing up to roughly $100 billion for healthcare and related programs.
  • Reports say Peter Thiel is exploring spending more time out of state and opening a new office, while Larry Page has discussed leaving and entities linked to him filed incorporation documents in Florida.
  • Investors and founders including Bill Ackman and Chamath Palihapitiya warn of an exodus and economic harm, as critics highlight valuation, liquidity and administrative challenges for taxing unrealized gains.
  • Tech voices such as Palmer Luckey and Dylan Field argue founders could be forced to sell illiquid stakes and face potential double taxation, while crypto figures including Alexis Ohanian and Jesse Powell denounce taxing unrealized gains and note crypto would be covered.
  • The initiative has not qualified for the ballot and needs about 874,641 valid signatures; state fiscal offices project tens of billions in one-time revenue but caution it could decline if high earners depart.